Many Japanese corporations are pinning their hopes on what they see as the expanding "middle class" in China, which they think will offer a huge potential market for their products. In reality, that class is a mirage created politically by the Chinese Communist Party and is on the verge of disintegrating.
The middle class in China began to show its presence around 2005 and has consisted of those in managerial posts at state-owned enterprises, financial institutions and subsidiaries of foreign companies, as well as those who operate their own information technology venture businesses. They were known for spending their money on plush condominiums, expensive automobiles, traveling abroad and playing golf.
Since around 2008, real estate prices have shot up so high that the price of a condo in Beijing, Shanghai and Guangzhou now is 30 to 50 times the annual income of those in the middle class.